A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows:

Project A				Project B
Initial	End-of-Year			Initial	End-of-Year
Investment	Cash Flows			Investment	Cash Flows
$40,000	Year 1	20000		$90,000	Year 1	40000
	Year 2	20000			Year 2	40000
	Year 3	20000			Year 3	50000

You are a financial analyst in the firm and you dont like the payback approach. You want to use NPV method to evaluate the projets. Your recommendation would be to (Suppose the firm's required rate of return is 22%)

		accept projects A and B.
		accept project A and reject B
		reject project A and accept B.
		reject both.
		Can't tell the difference